36 out of 85 bank accounts of PFI were found dubious in tax probe

New Delhi: A tax probe found that the source of deposits with respect to 36 bank accounts, out of 85 bank accounts of the PFI, were not supported by the financial profile of the account holders.

Based on the probe, the central board of direct taxes (CBDT) withdrew exemptions granted to the PFI and on March 30 last year cancelled tax exemptions of the Rehab India Foundation which is a non-governmental organisation run by the PFI.

The Enforcement Directorate (ED) investigation revealed that the PFI had created a very well organised structure in Gulf countries for raising funds and the collected funds were sent to India through Hawala.

The probe disclosed that the PFI was operating many money laundering fronts overseas, which included restaurants in Abu Dhabi.

According to a government document, in the Munnar Villa vista project, floated by the PFI through front outfits, a huge amount of cash was invested and some benami shareholders of this project were located in UAE, who later transferred the shares to PFI leaders.

The ED sleuths also found that Anshad Badruddin, an alleged PFI member arrested by UP ATS in Lucknow in February 2021 with arms and explosives, had received funds of more than Rs 3 lakh from the outfit for criminal activities.

The ED also found that the PFI had formed District Executive committees in various gulf countries- like in Oman, Saudi Arabia, Qatar, United Arab Emirates, Kuwait and Bahrain.

Investigator alleged that the India Fraternity Forum (IFF) and Indian Social Forum (ISF) were PFI’s overseas fronts and were being used to gather funds for activities in India.

Investigators claim that the executive committees of IFF and ISF were responsible for sending money to the PFI in India without leaving any trail.

The probe revealed that funds were collected in cash and remitted to India either through Hawala channels or hidden as remittances by sending it to the accounts of India-based relatives and friends of PFI’s members and sympathisers working abroad. The IFF had emerged as the most important conduit of the PFI for raising funds in the Gulf countries.